To achieve economic efficiency,a pure public good

Question

Quizplus · Accepted Answer

Economic efficiency occurs when resources are allocated in a way that maximizes overall welfare. Marginal cost is the cost of producing an additional unit of a good or service, and in the case of a pure public good, the cost of producing an additional unit is essentially zero. Thus, providing the pure public good at marginal cost would ensure that resources are allocated efficiently because it would be provided to all who benefit from it without imposing any additional cost.

To Achieve Economic Efficiency,a Pure Public Good